With ‘phenomenal’ job growth, Dallas ranks No. 2 in small business index

Add this to the list of signs that Texas’ economy is a “tale of two cities,” as one economist put it: While small business growth in the state as a whole lagged in June, the Dallas metro area held on to its spot as the second-fastest-growing in the nation.

The former is the result of a “rapid downturn” in the Houston area, which continues to feel a drag from the oil bust, said Jim Diffley, chief regional economist for IHS, a business analytics firm. IHS works with Paychex Inc., a payroll and human resources company, to track small business job numbers.

“Dallas’ performance over the course of the last two years of the index has been phenomenal, despite the downturn in Texas and the rapid downturn in Houston,” he said. “It’s stayed at No. 2 — strong, but nowhere near as strong as it was a year ago.”

In June, Dallas trailed only Seattle, according to Paychex and IHS’ Small Business Jobs Index, which is released monthly. It was Dallas’ sixth straight month in the top three metro areas. Read More >